COOP Cooperative, one of Switzerland’s leading retail and wholesale companies, on Sunday signed a memorandum of understanding (MoU) with the Marine Products Export Development Authority (MPEDA) to develop export-oriented organic aquafarming in India to cater to the growing demand for organic seafood products across the European Union.
MPEDA chairman A. Jayathilak and COOP Member of Management Gerhard Zurlutter signed the MoU at the ongoing India International Seafood Show 2018.
The MPEDA will identify entrepreneurs and provide them with technical advice on the production of high-quality organic shrimp that meet national and international certification protocols. COOP, which has nearly 2,200 sales outlets throughout Switzerland and wholesale/production business activities across Europe, has offered to procure the processed shrimp at a premium of up to 15% and with an additional 5% through financing for development activities, including training.
Incentive for farmers
“The reason why many farmers are hesitant to get into organic production is the increased costs involved. The premium price offered will offset the extra cost and incentivise them to explore organic farming,” said Mr. Jayathilak.
The pilot project will be run in Kerala to produce Organic Black Tiger Shrimp, initially on about 1000 hectares. If successful, the project will be extended to other places. MPEDA and COOP will facilitate the certification of a shrimp hatchery for the production of organic shrimp seed, and certify and empanel a small-scale feed mill unit to source the organic feed.
Mr. Zurlutter, who is also the head of overseas buying of frozen products for COOP, said the project in India would be their second leg in organic farming after Vietnam, where they have had success with similar projects and organic producers who are generating considerably higher revenues than conventional farmers.
Towards sustainability
“For us organic is not just an investment, it is the future. We are retailers with a deep-seated commitment to sustainability, and we understand that we have to get farmers into a position where they can readily adopt organic farming practices, so we support them with higher prices,” Mr. Zurlutter said.
Kochi-based JASS Ventures and Baby Marine International will collaborate with COOP to organise the supply chain in Kerala and process the produce.
